How Much House Can You Afford In Bellingham WA

Interest rates arguably have one of the most significant direct impacts on the housing market. With rates nearly DOUBLING from last year, going all the way up to 5.6% as of mid-August 2022. Today, I want to show you much "house" you can afford with today's rates in the Bellingham, WA, housing market.

Now for these examples. I will use today's interest rates of 5.6% for a 30-year fixed loan. And I'll be assuming average taxes and insurance and no HOA fees. As for down payment, we'll run a few examples. But we'll go ahead and start with 20% down. 

How Much Can You Afford In Bellingham, WA with 20% Down?

$300,000 home will cost you $1,729 a month.

$400,000 home will cost you $2,305 a month.

$500,000 home will cost you $2,881 a month.

$600,000 home will cost you $3,457 a month.

$700,000 home will cost you $4,034 a month.

$800,000 home will cost you $4,610 a month.

Check Out Our Affordability Calculator Here!

"But Tommy, what about one of those low or no money down or first-time home buyer programs? How much can I afford with one of those options?"

Great question! There are lots of "low" money-down programs out there. But with, the most common is the FHA 3.5% down option or the conventional 3% down option. Both these loans are great and have many other benefits we won't get into today. But there is one giant con that these loans come with: mortgage insurance. If you put less than 20% down, you'll probably have to pay mortgage insurance because you're seen as "high risk" (note certain loans are exempt, like VA and USDA). Mortgage insurance heavily depends on your credit score, loan type, borrowed amount, and a slur of other factors. However, the average mortgage insurance is usually around $200 to $300 a month. But I've also seen it as high as $600 a month.  

How Much Can You Afford In Bellingham, WA with 3% Down?

$300,000 home will cost you $2,301 a month.

$400,000 home will cost you $3,067 a month.

$500,000 home will cost you $3,834 a month.

$600,000 home will cost you $4,601 a month.

$700,000 home will cost you $5,368 a month.

Check Out Our Affordability Calculator Here!

Does homeownership sound hopelessly too expensive? WAIT, there is hope. Did you know you can buy down your interest rate when getting a loan? This can significantly affect your mortgage payment and make homeownership more affordable. Now, of course, there is going to be some up from costs of either a few hundred or a few thousand dollars depending on home much you buy down your rate. But buying down your rate can save you several hundred dollars a month. Which ultimately can make homeownership more affordable.

Another great way to make homeownership more affordable is by putting more money down. Obviously, 3% is the minimum. But let's run the numbers on 10% down. 

How Much Can You Afford In Bellingham, WA with 10% Down?

$300,000 home will cost you $2,023 a month.

$400,000 home will cost you $2,697 a month.

$500,000 home will cost you $3,371 a month.

$600,000 home will cost you $4,045 a month.

$700,000 home will cost you $4,719 a month.

Check Out Our Affordability Calculator Here!

Want to learn more about how much you can afford? Let's chat! Call or text me at 360 312 4992.